Feb. 3 (Bloomberg) -- Germany risks becoming the “target
of ire” in Europe with its demands for austerity to address the
debt crisis, World Bank President Robert Zoellick said.

Chancellor Angela Merkel’s government has fallen short on
leadership in the euro area by failing to clarify its “support
and incentives” for countries such as Italy and Spain as they
cut deficits, Zoellick told a panel today at the Munich Security
Conference in the Bavarian capital.

“If Germany at the end of 2012 is only associated with
austerity and the key countries can’t maintain the political
support for the economic actions, then Germany could become the
target of ire,” Zoellick said on a panel that included German
Defense Minister Thomas de Maiziere and former Foreign Minister
and opposition leader Frank-Walter Steinmeier.

Merkel’s government pushed through a fiscal compact
finalized at this week’s European Union summit, which puts in
place stricter budget rules to reduce debts. Zoellick said such
policies are insufficient as long as no measures are taken to
promote growth.

Maiziere, who served as Merkel’s chief of staff from 2005
to 2009, took issue with the notion of diverting large sums for
economic stimulus, also citing International Monetary Fund
Managing Director Christine Lagarde. Lagarde last week called on
European leaders to step up bailout funding for ailing states.

‘Intelligent Way’

“I don’t think that you can achieve growth with just more
money -- increased competitiveness comes through other means,”
Maiziere said. “Growth and competitiveness will have to come
about, but in a more intelligent way than would put us again in
a position that we’re in now.”

Zoellick also said Germany’s reluctance to increase
financing to fight the debt crisis has deterred governments in
other parts of the world from lending a hand. He cited an
unidentified Chinese leader at the November Group of 20 summit
in Cannes, France, as expressing frustration at Germany.

“What I saw from the emerging markets was first some
confusion, then some frustration, and then some disdain,”
Zoellick said. “One of the Chinese vice premiers said to some
of us on the side, ‘why should I act if Germany isn’t worried
enough to act?’”